An essential area of investment management, in addition to the underlying investments, is the efficiency of the structure used to hold them. Without this, the real returns to the investor will be decreased. The appropriate structure and investment strategy should wherever possible provide:

• Investment returns in line with selected risk profile.
• Efficient administration
• Regular valuations and information
• Flexible choice of investments and investment managers
• Strong asset and custodian security
• Tax efficient growth and withdrawals (subject to country of residence)

Personal Portfolio Bonds (PPB's) provide all of the above. They are single premium investment vehicles with a sum assured of 101% of the underlying assets (minus any exit charges within an initial period). In other words, they are shell structures that hold underlying investments. They offer the following benefits to investors:

Complete investment freedom: Within a PPB, the following financial instruments can be purchased: unit trusts, mutual funds, investment trusts, closed end funds, SICAV's, equities (on internationally recognised markets), bonds, gilt's, currency deposits, gold and certain currency and index futures.

Cost efficient dealing: All fund/unit trust purchases are transacted at fully discounted bid/offer spreads. All equity transactions are completed at institutional rates wherever possible. Finally, all currency deposits will benefit from the highest rates available at the time.

Simplified Administration: Insurance companies handle all certification, collection and re-investment of dividends, together with any ongoing changes in share structure. The bondholder (i.e. the investor) receives a quarterly valuation of all holdings and transactions. Interim valuations can usually be obtained within 48 hours.

Simple and efficient charging structure There is usually a small establishment fee charged and an annual administration fee of approximately 1.2% per annum depending on the fee structure and portfolio management services selected.

Withdrawals may be made at any time from the bond. Encashment, in full or part, is also allowed, however a small surrender penalty may be levied in the early years on total encashment.

Security: Most PPBs are offered by companies located on the Isle of Man and are covered by the Isle of Man Policyholders Protection Act which provides asset coverage for 90% of a client's investments, regardless of the size of their portfolio. Whilst there are many insurance companies which offer PPBs, wholly owned subsidiaries of British or European parent companies are usually recommended. Charges can also vary widely. Investors should also be aware of tax implications to UK residents in particular. Your Inter-Alliance WorldNet's adviser will be happy to suggest institutions that you may wish to consider.